Nazara Technologies Limited

Nazara Technologies reported its highest ever annual EBITDA of INR 153.5 crores in FY25, on revenues of INR 1,624 crores and a PAT of INR 62.5 crores. The gaming EBITDA margins stood at 20% for the full year. For Q4 FY25, revenues grew 95% year-on-year to INR 520.2 crores, with EBITDA increasing 74% year-on-year to INR 51 crores. Since its IPO in FY21, Nazara's revenues have grown 3.6x and EBITDA 3.4x, translating to compounded growth rates of 38% and 36% respectively.

In FY25, Nazara made several strategic moves, including acquiring Fusebox Games in the U.K. to strengthen its narrative-based mobile gaming presence. The company also entered offline gaming through Funky Monkeys and Smaaash, aiming for a 360-degree gaming ecosystem. Full ownership of Kiddopia was taken to enable faster strategic execution. The largest investment to date was made in PokerBaazi to bolster its leadership in skill-based real money gaming. Additionally, Nazara acquired gaming IPs from ZeptoLab and Curve Games to enhance global publishing capabilities, with Datawrkz acquiring Space and Time for GBP 4.8 million and Absolute Sports acquiring two IPs for $1.25 million.

Nodwin's Q4 FY25 revenue grew 50% year-on-year post Wings deconsolidation, but the segment reported an EBITDA loss of INR 15 crores for FY25. This loss was attributed to aberrations like subpar performance of Freaks4U and the cancellation of NH7 Pune Weekender, along with a one-time^📎 impairment of INR 15 crores on OCD investments. Management emphasized that Nodwin's core businesses remain profitable and the overall strategy is focused on long-term growth and market leadership, with a long-term consolidated EBITDA target of 30-35%.

PokerBaazi (an associate) reported FY25 revenue of INR 588.3 crores but an EBITDA loss of INR 57.5 crores, with Q4 FY25 showing an EBITDA loss of INR 22.1 crores. Despite this, Q4 FY25 saw strong operating metrics with gross gaming revenue (GGR) up 50% year-on-year, gross transaction value (GTV) up 38%, and deposits up 35%. Management explained the losses were due to significant brand-building spends (e.g., Shark Tank, IPL) and the new GST regime, as they prioritize market share capture and growing the overall poker ecosystem in India.

Kiddopia posted FY25 revenue of INR 191.8 crores and EBITDA of INR 43.7 crores, with a 22.8% EBITDA margin. In Q4 FY25, its EBITDA was INR 9.3 crores at a 20.1% margin. Management noted positive signs in Q4, including a 20% reduction in cost per trial and an increase in annual activations to 40% from 30%. Fusebox reported FY25 revenue of INR 161.6 crores and EBITDA of INR 30.2 crores, with Q4 FY25 revenue up 149% year-on-year to INR 79.1 crores. UA investments in Q4 are expected to drive FY26 growth, supported by new game launches.

Nazara's ad-tech platform, Vizibl.ai, was highlighted as a 100% self-serve product aimed at democratizing ad-tech for smaller businesses. In terms of global expansion, while PokerBaazi is currently focused on the Indian market due to its significant growth opportunity, management acknowledged its globally competitive technology platform and may consider international expansion at an appropriate time^⏳. The acquisition of Curve Games is seen as a bridge for Indian developers to access global markets, leveraging Curve's established relations with major distribution platforms.